Wright Medical shares rise on Q2 earnings Beat

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Shares in Wright Medical (NSDQ:WMGI) rose today in pre-market trading after the medical device maker beat expectations on Wall Street with its second quarter results.

The Amsterdam-based company posted losses of $67.7 million, or 64¢ per share, on sales of $205.4 million for the three months ended July 1, seeing losses grow 64.5% while sales grew 14.3% compared with the same period last year.

Adjusted to exclude one-time items, losses per share were 3¢, just ahead of the 6¢ loss-per-share consensus on The Street, where analysts were looking for sales of $196.8 million, which the company also topped.

“We produced outstanding results across the board in the second quarter, including 13% constant currency net sales growth, an estimated 370 basis point increase versus the first quarter of 2018, and we exited the quarter on a strong, positive trajectory, which we expect to continue throughout the remainder of 2018.  These results represent another strong performance in our U.S. upper extremities business, which grew 22% in the second quarter, driven by 24% growth in our U.S. shoulder business.  We anticipate that continued penetration of our Simpliciti shoulder system, our ongoing Perform reversed launch and accelerating adoption of our Blueprint enabling technology will continue to drive market-leading shoulder sales growth in 2018,” prez & CEO Robert Palmisano said in a press release. “Our U.S. lower extremities growth rate accelerated to 9% in the second quarter, driven by approximately 15% growth in total ankle and improved growth in our core lower extremities business.  The lower extremities business returned to market rates of growth well ahead of schedule, driven primarily by increased contributions from our expanded sales organization.  We are on a good trajectory headed into the second half of the year when we expect the third quarter launch of our PROstep minimally invasive surgery system to provide further momentum for this business.  We also received PMA approval for Augment injectable bone graft and initiated launch activities in the U.S.  We believe the superior handling characteristics and ease of use of Augment injectable, combined with the proven clinical benefits of Augment, will accelerate the growth in our biologics business in the back half of this year.”

Wright Medical increased its net sales guidance for the year, lifting it from between $800 million and $812 million to between $808 million and $820 million. Non-GAAP adjusted earnings per share are expected to be a loss of between 14¢ and 21¢, the company said.

Shares in Wright Medical rose 8.4% in premarket trading to $28.50.

In June, Wright Medical said that it inked a deal for $675 million in debt to be offered by a wholly-owned subsidiary.

The post Wright Medical shares rise on Q2 earnings Beat appeared first on MassDevice.

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